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Industry
Fleet of Foot
Jewelry is a temptation to thieves. John Kennedy of the Jewelers’ Security Alliance offers advice to keep your business safe.
By Ettagale Blauer
 Like love and marriage, crime and diamonds seem to go together. Small, portable, easily fenced and highly valuable, diamonds and jewelry have always been attractive to thieves and burglars. Some of the crimes make international headlines, like the sophisticated, meticulously planned armed heist of $50 million worth of rough and polished diamonds from the cargo hold of an airplane awaiting takeoff on a runway of Brussels Airport in February. Some are low profile, like the West Coast retailer who was trying to be politically correct and nonjudgmental in January when he showed a $45,000 Rolex to a shabbily dressed man, who fled the store as soon as he had the watch on his wrist. And some are just audacious beyond belief, such as the criminals who stole a Caterpillar front-end loader in the early hours of the February blizzard in the Northeast and drove it to a New Jersey mall, where they plowed through the wall of a jewelry store. They then lifted the four-foot-tall safe containing an estimated $1 million in cash and jewelry from the store, loaded it onto a flatbed truck and drove away. The snowstorm gave perfect cover to a front-end loader disguised as a snowplow driving down the highway.
While crimes involving diamonds and jewelry are common and frequent — these three incidents all occurred in the first two months of 2013 — the specifics and types of crimes in the jewelry industry change with the times. Criminals adapt their methods and targets, law enforcement becomes more effective and the industry’s security precautions and initiatives change accordingly.
In mid-March, the Jewelers’ Security Alliance (JSA), in releasing its 2012 Annual Crime Report covering criminal activity targeted at the jewelry industry in the U.S., announced that the number of incidents had increased from 1,478 in 2011 to 1,538 in 2012, a rise of 4 percent. However, the total dollar losses decreased sharply from $85.1 million in 2011 to $60.2 million in 2012. John Kennedy, the president of JSA, explained, “Lower-dollar crimes like grab-and-runs and three-minute burglaries increased sharply and replaced higher-dollar crimes, and this resulted in lower total dollar losses. For example, high-dollar safe attacks decreased 19 percent, and high-dollar traveling salespersons’ losses continued their dramatic decline.”
JSA Vice President Scott Guginsky, who oversees JSA’s jewelry crime database and statistics, noted that the 2012 report found that so-called three-minute burglaries rose to 320 from 239 in 2011, grab-and-runs increased to 378 from 326 and smash-and-grab robberies of high-end watches and jewelry were up by 100 percent in 2012 from the previous year. “An especially disturbing trend was the increase of crime involving retail jewelers away from their place of business,” said Guginsky, “including home invasions and jewelers being targeted outside their residences.”
Officials made 461 arrests during 2012, down from 657 arrests in 2011, according to JSA data, and two homicides occurred during jewelry crimes during the year, down from seven in 2011. Of the 1,538 crimes reported to JSA for 2012, the state experiencing the most crimes was California, with 212, followed by Texas with 143, New York with 119, Pennsylvania with 92 and Florida with 85.
Kennedy offered three reasons that dollar losses from crimes against jewelers in the U.S. were continuing a sharp decline. “A combination of growing FBI and law enforcement cooperation with the jewelry industry, more sharing of information among jewelers on crimes, suspects and crime prevention methods, and the development of local crime prevention networks of jewelers have had a powerful impact on crime reduction,” said Kennedy. “Jewelers and police are now more than ever aware and knowledgeable about jewelry crime. Over the past ten years, this has resulted in a dramatic 63 percent reduction of dollar losses on an inflation-adjusted basis.”
“The biggest type of loss that we see now is the ‘30-second crime,’ where two to five men, usually young males, focus on stores with high-end merchandise,” enter the store, violently smash the showcases, grab handfuls of goods and quickly run into the street. “It’s terrifying,” as Kennedy describes it. “It’s very dangerous and very difficult to stop.” While the criminals may wear hoodies — the popular hooded sweatshirts worn by young men in urban areas — “they don’t bother covering their faces,” Kennedy says. Unfortunately, this is not one national gang that moves among various cities, as has been the case in the past, continues Kennedy. There are many local gangs “in California, Pennsylvania, Texas, Florida, all over the place. These are people who do this for a living.”
The only way to reduce the risk of the 30-second smash-and-grab crime, Kennedy says, is to have burglar-resistant glass. Even so, this doesn’t stop them completely but it does “slow them down. After they smash at the glass ten times and it doesn’t break, they leave. Or they make a small hole in the glass and pull out a couple of pieces, wind up getting cut and give up. They don’t get much product. They want to get out quickly.”
Mall stores are particular targets for these crimes since they project a wide-open, welcoming presence. The thieves concentrate on watches, Kennedy adds, because “they feel they can get a better percentage on watches” from their fences. “They might get 40 to 50 percent on a watch but only 10 to 20 percent on diamonds and jewelry.”
This is a classic “young man’s crime,” according to Kennedy, as is a lot of criminal activity. “You don’t see old criminals in the jewelry industry,” he says matter-of-factly. “They die, they go to jail or they get out of the business. It’s very dangerous.”
The “snatch-and-grab” or, more precisely, “snatch-and-run” is the three-minute version of the 30-second crime — because the criminal spends a few minutes “shopping” in the store — and it is also on the increase. It’s a difficult crime to thwart because it takes place so quickly. While it may feel spontaneous to the victim because of the speed with which it happens, it is actually a well-planned crime that takes advantage of a jeweler’s natural vulnerabilities. Before anyone can react, the criminal — and the jewelry — are gone. The best defense the jeweler has is to limit the type and amount of goods on display.
The most commonsense way to avoid thefts is to take a good look at the person who walks into your store. It is tricky because while it is true that very well-dressed people sometimes turn out to be thieves, casually dressed customers can be well-heeled potential buyers, too. Other suspicious activity: customers who ask to see products at random, in a wide range of styles and prices, and then don’t really pay attention to what is shown to them; shoppers who don’t really look at the first product before asking to see a second and third, and people who appear distracted and more focused on the store environment and layout than the product.
“Snatch-and-run crimes are on the rise. Though these people are usually well-dressed, Kennedy says, “Store personnel must size up clients and if they feel something is not quite right, they can make up a reason not to show something.” When you do show items, show one item at a time. Many clerks still take a whole tray out of the showcase. Or, they may start with one piece, but when the customer asks to see a second and then a third, they don’t stop to put away the earlier pieces. The criminal is just looking for a quick getaway. If he is only offered one piece at a time, that’s the one he is going to take. Give him a handful and they’re all gone.
These crimes occur more frequently than other crimes in the jewelry industry but they usually end up in smaller losses, in the $3,000 to $7,000 range. The criminals do their homework. They often favor branches of the same chain. Familiarity with the store’s layout, the arrangement of the jewelry and the likely number and type of staff members they will encounter make the criminal’s job easier. They will hit many stores in the same group, especially where the personnel are less well trained.
There is minimal danger or violence in such crimes, according to Kennedy, unless one of the store’s personnel tries to block the thief from leaving. “They will push you over,” Kennedy notes. “You shouldn’t challenge anyone.” Instead, try to prevent the loss from happening in the first place. One way is to have a prearranged signal to alert another clerk to move quickly to the customer’s side of the case. The presence of two clerks will often deter a potential criminal who wants the easiest way out. If he feels his exit is blocked, he may just give up and move on to an easier target.
Older criminals, those who have survived their more violent, fleet-of-foot days, have evolved a more refined, “softer” version of snatch-and-run. They look for display cases with silicon seals. They slit the seal, lift off the glass covering the case, reach in and grab a handful of jewelry. Two older criminals sliced their way through cases this past Christmastime when stores were most crowded. They cut a swath through Texas, Colorado, Missouri and Kentucky over a period of several months.
If you hear footsteps on your roof, don’t look for squirrels — it’s most likely a gang of thieves, about to break into your jewelry business through one of its most vulnerable areas. While you’re making sure your vault is securely closed at the end of the day’s business and double-checking the front door lock on your way out, the thieves are busy casing your roof for the easiest, and least observed, port of entry. And they’re not going at it with can openers. Today’s gangs of crooks are well-armed and well-prepared, bringing remarkably good intel to the job. Often, they are more educated on the vulnerabilities of the premises than the store or business owner. While your job is selling jewelry, theirs is stealing jewelry, and they have a business plan that is laser focused on the work at hand.
Rooftop thefts occur after hours when premises and adjacent businesses are closed for the day. The thieves go through the retailer’s own roof or through the roof of the store next door. Jewelers are usually located next to businesses with less valuable goods that are easier to enter. Sometimes all it takes is a simple tool to cut through the plaster wall separating the premises. Kennedy says, “They will try to disable the alarms in the jewelry store by electronic means, or just block the alarm. Often, they will have cased the place beforehand by visiting the store disguised as a well-to-do customer during work hours.”
The gangs who specialize in rooftop crimes have had significant success in attacking safes. Most safes that Kennedy describes are TL 15 and TL 30, the number referring to the theoretic amount of time it would take to break in to the front of the safe. The safe sides and the back, he says, “can be broken in by any tool you buy in Home Depot. The rest of the safe does not have the same level of protection as the front.”
Invest instead in a safe rated “15 x 6” or “30 x 6,” which offers protection on all six sides. In addition, these safes are tool and torch resistant. It takes 30 minutes to 60 minutes to get into one of these safes and time is never on the thieves’ side. Once the thieves have broken your alarm line security, they know their time is limited. For this reason, Kennedy notes, only 20 percent of break-ins involved safes. The other 80 percent are burglaries in which the thieves break into the store and take items that are not in the safe. Retailers can reduce their losses by putting their goods away every night. In many stores, there is not enough room in the safe for all the jewelry on display. In that instance, Kennedy advises, put it in the back of the store, out of sight. “If they see it, it’s tempting.” With nothing on view, a thief is less likely to spend time breaking in.
Happily, rooftop break-ins have been greatly reduced, thanks to the apprehension of two gangs that were responsible for many of these after-hour crimes over a period of many years. One gang of Cuban criminals operated out of Miami while a family gang, the O’Briens, stole their way through the rooftops of Texas.
Traveling salesman losses are way down, not because there are fewer thieves but because there are fewer traveling salesmen. Those crimes used to total more than all the other losses combined but changes in distribution have virtually eliminated it from the statistics. Even the salesmen who are on the road are servicing customers, not carrying new product lines with them.
A glance at statistics amassed and analyzed by JSA shows a remarkable, year-to-year decline in such crimes from nearly 200 in 2007 and 2008, down to 65 in 2012. The dollar figures decreased dramatically as well, from more than $40 million to $12.4 million during the same time period. When opportunity stops knocking, the criminals move on to other doors.
While domestic salesmen are less of a target, the same can’t be said of foreign sellers. Kennedy notes an uptick in crimes against traveling salesmen from Asia as well as Israel. Foreign salesmen are not as familiar with the precautions they should be taking nor the methods thieves use to steal their goods. There are still South American gangs that follow foreign salesmen from one sales call to another and watch for unattended vehicles.
But there’s good news here, too. Kennedy, who tracks every aspect of crime, criminals and current law, says that tougher immigration policies since 9/11 have had a big impact on the crime rate in the jewelry industry. “People who are armed when they commit these crimes go to prison and when they are released, they are deported.” If they return to the U.S., they have an automatic criminal sentence. This has made airports much safer for salesmen. No longer are Colombian gangs hanging around airports, looking for likely victims.
The other good news correlates to the reduction in loss of life across the industry. Over the past six years, the number of jewelers killed during the commission of a crime remained low, although still not zero. In 2012, two jewelers lost their lives. For the most part, criminals would prefer to take the goods, and not the lives, of those in the business. When Kennedy started with JSA, back in 1992, there were 32 people killed during jewelry robberies that year, and most of them were jewelers.
According to Kennedy, there is little violence involved in most crimes against jewelers. He strongly recommends not having a gun in the store for the simplest of reasons. “It’s not an effective weapon in protecting yourself. The person who is coming in is ready. You are always less prepared and you don’t have time to pull the gun out. In addition, you are in a confined space. If you resist, especially with a gun, your chances of being hurt or killed are vastly increased.”
Bank robber Willie Sutton famously said when asked why he robs banks, “because that’s where the money is.” It’s the same with all criminals. They go where the money is and right now, the money is in gold. As the gold price soared, so did the number of firms offering to buy gold, including many that were set up for this express purpose. This business is ready made for criminal activity. Kennedy says criminals scam the gold buyers in two ways.
“Scammers will bring in an item that is real gold but manage to switch it for plated gold after the store owner sets a price. In the second scam, items are gold-plated over a base metal that is difficult to detect. For most buyers, the only way to determine the gold content of a piece of jewelry is to melt it.” There is a somewhat pricey desktop device that provides an instant analysis of an item’s metal content, showing the type and percentage of every metal in it. It prints out the information on a small receipt. If a firm is in business exclusively to buy gold, Kennedy suggests this is a worthwhile investment.
Perhaps the best news on the security front comes from jewelry shows. In the past, shows were like candy stores to criminals and it was a rare show that did not result in headlines about very high losses. Today, thanks in part to JSA’s training and education efforts, trade shows have become much safer. Kennedy says, “All of the shows hire top-flight security people and the police have become far more aware of procedures. At the JCK show, we have worked with the Las Vegas Metro Police department, show security staff and hotel staff. They have become very skilled. The same is true in New York and at the Tucson and Miami shows. You ‘scare them aware.’”
The thefts that do take place around shows tend to hit buyers and sellers when they are leaving the event. Thieves don’t need to gain entry to a show. “You have to be super careful when you leave a show,” Kennedy cautions. There is also the problem of internal theft at the show. Product left in the booth overnight is a temptation to cleaning staff, or even employees of other exhibitors. Occasionally, exhibitors are deliberately distracted when working in the booths by an accomplice of a thief. Kennedy adds, “You have to have enough staff to deal with the visitors to your booth and still remain aware of surrounding activity. It’s tiring and stressful.”
The key to staying safe is to be vigilant and invest in proven security equipment, including a well-rated safe and a good alarm system. Train your staff to show jewelry properly and to be alert for suspicious people. Be sure everyone in the store knows how to react to a theft, particularly when it involves a potential for violence. Don’t try to disarm or challenge a burglar. He is far more prepared to commit the crime than you are to stop it. Take as many preventive steps as possible but, above all, don’t try to be a hero. Article from the Rapaport Magazine - April 2013. To subscribe click here.
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